{"id":4956,"date":"2006-08-31T00:00:00","date_gmt":"2006-08-31T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedging-without-a-hedge-fund","status":"publish","type":"post","link":"https:\/\/www.hedgeco.net\/news\/08\/2006\/hedging-without-a-hedge-fund.html","title":{"rendered":"Hedging Without a Hedge Fund"},"content":{"rendered":"<p>  It&#8217;s been an up-and-down summer for stocks, and Labor Day weekend might not mark the end of Wall Street&#8217;s worries (see BusinessWeek.com, 8\/18\/06, <a href=  \"http:\/\/www.businessweek.com\/investor\/content\/aug2006\/pi20060818_948176.htm\">&#8220;Can the Rally Keep Up?&#8221;<\/a>). As uncertainty continues over economic growth and inflation, many investors may be  looking for ways to reduce risk in their portfolios. In small doses, mutual funds that use hedging strategies can help do just that.<\/p>\n<p>  Hedge funds\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009dprivate investment pools that cater to wealthy investors\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009dhave gotten plenty of buzz in recent years for their sophisticated strategies and exclusive allure. Nevertheless, typical  investors probably can&#8217;t meet the lofty investment minimums and high fees that hedge funds demand. Enter hedge-like mutual funds (see BusinessWeek.com, 12\/12\/05, <a href=  \"http:\/\/www.businessweek.com\/magazine\/content\/05_50\/b3963159.htm\">&#8220;Funds Made to Deliver&#8221;<\/a>).<\/p>\n<p>  Like hedge funds, these mutual funds strive for top-notch returns in any kind of market. Some hedge-like mutual funds can give a portfolio extra diversification\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009dand reduce overall risk\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009dbecause, as  with commodities or real estate, their returns usually don&#8217;t correlate with the broader stock market. &#8220;If you&#8217;ve got a longer time horizon and you want to provide some diversity to your portfolio,  a hedging instrument would be a good addition,&#8221; says Philip Edwards, managing director of Standard &amp; Poor&#8217;s Investor Services.<\/p>\n<p>  <a href=  \"http:\/\/www.google.com\/news\/url?sa=T&amp;ct=us\/0-0&amp;fd=R&amp;url=http:\/\/www.businessweek.com\/investor\/content\/aug2006\/pi20060831_009368.htm%3Fchan%3Dtop%2Bnews_top%2Bnews%2Bindex_businessweek%2Bexclusives&amp;cid=1109126100&amp;ei=2Jn2RPGjIJSgogK_nfC0BQ\">  Read Complete Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It&#8217;s been an up-and-down summer for stocks, and Labor Day weekend might not mark the end of Wall Street&#8217;s worries (see BusinessWeek.com, 8\/18\/06, &#8220;Can the Rally Keep Up?&#8221;). As uncertainty continues over economic growth and inflation, many investors may be [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4956","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=4956"}],"version-history":[{"count":0,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4956\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=4956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=4956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=4956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}